Is Subscribe & Save Working?

Image from: Subscribe Function / Shutterstock Auto replenishment programs are supposed to make consumers’ lives easier— they simply sign up and then receive the product at their front door without any hassle or worries. To better understand the extent of awareness and usage of such programs, we took a closer look at Amazon’s Subscribe & Save, one of the better known auto-replenishment programs in the market. In addition to

Auto replenishment programs are supposed to make consumers’ lives easier— they simply sign up and then receive the product at their front door without any hassle or worries. To better understand the extent of awareness and usage of such programs, we took a closer look at Amazon’s Subscribe & Save, one of the better known auto-replenishment programs in the market. In addition to the convenience, Amazon made things even more enticing by offering discounts and free shipping for qualified items through Subscribe & Save. With these obvious benefits, one would expect the program to be a resounding success.

After studying users of Subscribe & Save, our findings reveal a slightly different story. Amazon has continued to grow in popularity with the number of shoppers visiting the site growing by 19% when comparing Q1 2012 to Q1 2011. During the same time frame purchases on Amazon grew by 12%. Despite the growth, the number of new product enrollment actually dropped by 37%, indicating that Subscribe & Save is waning in popularity.